CIMA E3 Strategic Management E3 Question # 20 Topic 1 Discussion

CIMA E3 Strategic Management E3 Question # 20 Topic 1 Discussion

E3 Exam Topic 1 Question 20 Discussion:
Question #: 20
Topic #: 1

Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.

Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.

Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.

Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)


A.

Competitive rivalry.


B.

Threat of substitutes.


C.

Bargaining power of suppliers.


D.

Threat of new entrants.


E.

Bargaining power of customers.


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